It takes on average six months to be able to rent a furnished studio in Paris, according to recent data.
Many European cities are facing a housing crisis for an ever-increasing population.
The French capital is no exception. Although the phenomenon is not new, the rental market has never been so tight.
It takes on average six months to find, rent and move into a furnished studio in Paris and rent prices increased by 1% in the third quarter of this year, according to data published by real estate agency Lodgis.
The increase remains limited due to the capping of rents in Paris since 2019. In other large French cities, the increase is much greater: more than 10% in Bordeaux and almost 15% in Aix-en-Provence, according to Lodgis.
This increase is the natural result of supply and demand, underlines Alexis Alban, president of Lodgis.
“The housing shortage is worsening and demand continues to increase”explains Alexis Alban in a press release.
“We are seeing the return of international tenants, students and mobile professionals confirmed who continue to opt for traditional long-term furnished rentals”he adds.
The difficulties encountered in purchasing housing may partly explain this phenomenon.
To try to remedy this, the French government will extend its zero-interest loan for low-income families and open it to a larger number of people next year, in order to help them access property.
Six months to rent a studio in Paris
Nearly three-quarters (73%) of professionals have noted a drop in the number of properties available for rental compared to last year, according to a press release from the National Real Estate Federation (FNAIM). 66% of them also saw an increase in demand.
“The rise in credit rates and the tightening of conditions imposed on borrowers prevent some tenants from accessing property. Assets stay in place longer, which slows down the mobility of the fleet.”explains Loïc Cantin, president of the FNAIM, in August.
He also mentions the constraints weighing on owners which encourage them to “to give up” and sell their goods.
The tension on the rental market is all the greater as the 2024 Olympic Games, which will see visitors, volunteers and teams flock to Paris, are looming on the horizon.
The government came under heavy criticism when it decided to requisition the rent-controlled apartments of more than 2,000 students in order to accommodate Olympic staff during the summer.
A student union took the matter to court, where an administrative judge suspended the requisition.
The housing crisis in Europe
Paris is not the only European city experiencing a serious housing shortage.
In London, the average rent for a one-bedroom apartment in the city center is now almost €2,500 per month, compared to the UK median salary of €2,600 .
The same is true in Amsterdam, where the average rent is over 1,500 euros per month, more than twice the median salary in the Netherlands.
It is low-income households and young people who are feeling the impact of the housing crisis the hardest.
To deal with this situation, some cities have opted for different solutions.
Vienna, Paris, Amsterdam and other cities have decided to crack down on Airbnb-style rentals which are seen as fueling the lack of available rental properties on the market.
Berlin has lifted its ban on Airbnb, but strict rules – with hefty fines – remain.
Another solution is to tax vacant properties in order to discourage owners from keeping their homes empty, and to encourage them to rent them.
In Europe, Spain led the way with its first-ever national “right to housing” law, passed last year, which includes a tax on homeowners who leave their homes unoccupied for long periods.
The French government followed this year by introducing a similar tax for cities with more than 50,000 inhabitants.
Across the Atlantic, Vancouver in Canada and Washington DC in the United States have adopted a similar measure, and other cities such as San Francisco and Honolulu are considering doing the same.